Different Types of Hedge Funds

There are different types of hedge funds. They are classified according to the strategies used to achieve high returns. Hedge funds can benefit from the effective use of price fluctuations in various markets, as well as macroeconomic trends.

Investing strategies

Among hedge fund types, the following are distinguished: long-term investment funds, arbitrage funds, global macro strategy funds, event strategy funds, quantitative funds, distress investment funds, and multi-strategy funds. There are also funds of funds that invest in other hedge funds.

What are the different main strategies of hedge funds? Arbitrage strategies aim to capitalize on fluctuations in asset prices. Macro strategies involve investing in various markets, taking into account global economic trends and developments. The long/short strategy involves buying stocks that the fund believes will rise in price shortly and selling assets that are losing value.